The cocoa market in crisis
In recent months, the cocoa market has experienced an unprecedented surge, with prices reaching an increase of 160% compared to the beginning of the year. This increase was mainly caused by adverse weather conditions and a shortage of supply from major producers, such as Côte d’Ivoire and Ghana. These countries account for about three-quarters of world cocoa production, and difficulties in harvesting have led to a deficit that has not been seen for more than 60 years
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Concerns about coffee
Not only cocoa, but also coffee, is experiencing a period of strong volatility. Coffee prices have reached record highs, the highest since 1977. Experts warn that it could take years for the market to stabilize. Carlos Mera from Rabobank pointed out that, although cocoa and coffee are attractive commodities for traders, the markets remain very volatile and risky. The combination of climate and market factors makes it difficult to predict an improvement in the short term.
The case of eggs
Another food that is seeing an increase in prices is that of eggs. Experts predict that high costs will persist even in 2025, mainly due to the bird flu infections that have hit the sector. Kevin Bergquist, from the Wells Fargo Agribusiness Institute, highlighted that egg prices were affected by supply interruptions and seasonal increases during the holidays. Wholesale egg prices have increased by almost 55% in the last year, and this trend doesn’t seem destined to stop.
Implications for consumers
These price increases can only have a direct impact on consumers’ pockets. With cocoa, coffee, and eggs continuing to rise, families may need to review their food expenses. The scarcity of supply and climate uncertainties are factors that influence not only prices, but also the availability of these products on the market. Analysts warn that, without a significant change in production conditions, consumers will have to prepare for a future of high prices and uncertainty
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